Which of the following inventory costing methods yields the highest net income during a period of rising inventory costs?

Question

Quizplus · Accepted Answer

During a period of rising inventory costs, the first-in, first-out (FIFO) method typically yields the highest net income. This is because the older, lower-cost items are recorded as cost of goods sold, while the newer, higher-cost items remain in inventory, resulting in a lower cost of goods sold and thus a higher net income.

Which of the Following Inventory Costing Methods Yields the Highest